Tesco has sealed a joint venture agreement with a subsidiary of the Tata Group that will see the British giant become the first foreign supermarket chain to enter India’s $500 billion retail sector.

The 50:50 deal between Tesco and Trent Hypermarket Limited was given final approval by India’s Foreign Investment Promotion Board on Friday.

Tesco plans to invest $140 million in India as part of the deal to operate 12 hypermarkets similar to Britain’s Tesco Extra outlets, selling everything from groceries and personal care products to home furnishings and fashion accessories.

The stores – operated under Trent’s existing ‘Star Bazaar’ and ‘Star Daily’ brands – will be spread across southern and western regions of India.